Developing Marketing Strategies and Plans
Marketing Management, 13th ed2
Chapter QuestionsHow does marketing affect customer value?How is strategic planning carried out at different levels of the organization?What does a marketing plan include?
Three Vs Approach to MarketingDefine the value segmentDefine the value propositionDefine the value network
What is the Value Chain?The value chain is a tool for identifying was to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.
Core Business ProcessesMarket-sensing processNew-offering realization processCustomer acquisition processCustomer relationship management processFulfillment management process
Characteristics of Core CompetenciesA source of competitive advantageApplications in a wide variety of marketsDifficult to imitate
Table 2.1 Becoming a Vigilant OrganizationCan we learn from the past?How should the present be evaluated?What do we envision for the future?
What is Holistic Marketing?Holistic marketing sees itself as integrating the value exploration, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and coprosperity among key stakeholders.
What is a Marketing Plan?A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.
Levels of a Marketing PlanStrategicTarget marketing decisionsValue propositionAnalysis of marketing opportunities
TacticalProduct featuresPromotionMerchandisingPricingSales channelsService
Corporate Headquarters Planning ActivitiesDefine the corporate missionEstablish strategic business units (SBUs)Assign resources to each SBUAssess growth opportunities
Good Mission StatementsFocus on a limited number of goalsStress major policies and valuesDefine major competitive spheresTake a long-term viewShort, memorable, meaningful
Major Competitive SpheresIndustryProductsCompetenceMarket segmentVertical channelsGeographic
Rubbermaid Commercial Products, Inc.Our vision is to be the Global Market ShareLeader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost-effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our Uncompromising Commitment to Customer Satisfaction.
MotorolaThe purpose of Motorola is to honorablyserve the needs of the community by providingproducts and services of superior quality at a fair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so, provide the opportunity for our employees andshareholders to achieve their personal objectives.
eBayWe help people trade anything on earth.We will continue to enhance the onlinetrading experiences of allcollectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.
Table 2.3 Product Orientation vs. Market Orientation
CompanyProductMarketMissouri-Pacific RailroadWe run a railroadWe are a people-and-goods moverXeroxWe make copying equipmentWe improve office productivityStandard OilWe sell gasolineWe supply energyColumbia PicturesWe make moviesWe entertain people
Dimensions that Define a BusinessCustomer groupsCustomer needsTechnology
Characteristics of SBUsIt is a single business or collection of related businessesIt has its own set of competitorsIt has a leader responsible for strategic planning and profitability
Ansoffs Product-Market Expansion GridMarket penetration strategyMarket development strategyProduct development strategyDiversification strategy
What is Corporate Culture?Corporate culture is the shared experiences, stories, beliefs, and norms that characterize an organization.
Tactics for Managing ChangeAvoid the innovation title for the teamUse the buddy systemSet the metrics in advanceAim for quick hits firstGet data to back up your gut
Market Opportunity Analysis (MOA)Can the benefits involved in the opportunity be articulated convincingly to a defined target market?Can the target market be located and reached with cost-effective media and trade channels?Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?
Market Opportunity Analysis (MOA) (cont.)Can the company deliver the benefits better than any actual or potential competitors?Will the financial rate of return meet or exceed the companys required threshold for investment?
Goal Formulation and MBOUnits objectives must be hierarchicalObjectives should be quantitativeGoals should be realisticObjectives must be consistent
Porters Generic StrategiesOverall cost leadershipDifferentiationFocus
Categories of Marketing AlliancesProduct or service alliancePromotional allianceLogistics alliancesPricing collaborations
Marketing Plan Contents Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
Evaluating a Marketing Plan Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?